by Risk calculated on 03/15/2023 10:13:00
The National Association of Home Builders (NAHB) said the Housing Market Index (HMI) was 44, down from 42 last month. Any number below 50 indicates that more builders consider sales conditions to be bad than good.
From NAHB: Builder confidence rose in March, but future outlook is uncertain
Although high construction costs and high interest rates continue to hamper housing affordability, builders expressed cautious optimism in March as a lack of existing inventory shifts demand to the new home market.
Builder confidence in the market for newly built single-family homes in March rose two points to 44, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). This is the third consecutive monthly increase in builder sentiment.
The HMI index measuring current selling conditions in March rose two points to 49 and the gauge measuring traffic from potential buyers rose three points to 31. This is the highest traffic since September of the last year. The component describing sales forecasts over the next six months fell one point to 47.
Looking at the three-month rolling averages for regional HMI scores, the Northeast rose five points to 42, the Midwest rose one point to 34, the South rose five points to 45, and the West rose four points to 34.
Click on the graphic to enlarge the image.
This graph shows the NAHB index since January 1985.
This was above consensus forecasts.
“Traffic from potential buyers” is still well below the balance at 31 (below 50).